Capital structure is the particular combination of debt and equity used by a company to finance its overall operations and growth. In corporate finance it is the mix of various forms of external funds, known as capital, used to finance a business. It consists of shareholders' equity, debt, and preferred stock, and is detailed in the company's balance sheet. A company's capital structure is helpful in understanding its current financial health, risk profile and compatibility with specific investment or acquisition strategies. A company's capital structure refers to how it finances its operations and growth with different sources of funds, such as bond issues, long-term notes payable, common stock, preferred stock, or retained earnings. The presentation gives in-depth knowledge on the topic.

Shikha Bharti

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